Q3 2019

14 LATIN AMERICA NEWS / Q3 2019 , MINISO’s Rapid Development And Expansion In Brazil On August 1st, MINISO Brazil ERP-SAP systemwas officially launched, and the self-built logistics warehouse was put into use, marking the rapid development stage in the Brazilianmarket forMINISO. MINISO, a Japanese designer brand, entered the Brazilian market in February 2018, selling daily necessities, household goods, beauty and skin care products. With the characteristics of high quality, good design and affordable prices, MINISO quickly opened the market and became one of the important choices for local consumers to buy daily necessities. So far, MINISO has opened more than 3,500 stores in over 80 countries and regions. Over 50 stores have been opened throughout Brazil, mainly in Sao Paulo and Rio de Janeiro. For MINISO, the very beginning of development in Brazil, a brand new market, was not easy. Due to the diversified categories of taxes and frequently changing policies, it was hard to guarantee the financial accounting, logistics and transportation, relying on agency services provided by a third party to manage service quality and communication efficiency. In the past two years since entering Brazil, the third- party systems of MINISO, such as finance, IT and logistics were not well connected with the headquarters, which also affected the normal development of MINISO’s business in Brazil. In 2017, MINISO cooperated with IBM to establish the global business operation service platform, with SAP as its core system. It developed into a comprehensive digital platform linking supply chains, operations, finance, logistics and human resources through the analysis and decision-making of big data, refining operations and supporting the rapid expansion of MINISO. In February 2019, MINISO headquarters decided to build its own ERP-SAP system and logistics warehouse in Brazil. The project was set up and started on March 1st, and project personnel were sent to Brazil to work with the Brazilian subsidiary. After six months of construction the SAP system and self-built logistics warehouse were successfully launched on August 1st. The MINISO ERP-SAP system and self-built logistics warehouse have been officially put into use in Brazil, enabling its internal process control to be comprehensively improved with the help of the new system. The system and the new IP products such as Marvel will take MINISO to the next stage of development in the local market. According to the director of MINISO Brazilian market, MINISO will enlarge the product category and speed up the new release of products in the Brazilian market in the future. Together with investors, MINISO will cover stores in all major cities throughout Brazil. Currently, MINISO’s target market expansion areas are three southern states, which are SC, PR and RS, followed by central MG and northern Brazil. The total number of MINISO stores in Brazil will reach 300 in the future.